UK growth forecast cut by IMF

The UK's growth forecasts for this year and next have been slashed by the International Monetary Fund. It says the private sector is being hampered by a lack of credit and economic uncertainty.

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Osborne urged to consider changing austerity plans

The International Monetary Fund (IMF) has suggested Chancellor George Osborne should consider changing his austerity plans in the light of "lacklustre" private demand.

In its World Economic Outlook report, the IMF also suggested further action should be taken on monetary policy, potentially including the purchase of private sector assets.

Chancellor George Osborne. Credit: Stefan Wermuth/PA Wire

"In the United Kingdom, the recovery is progressing slowly, notably in the context of weak external demand and ongoing fiscal consolidation", the report states.

The IMF noted that rebalancing from the public to private sector was "being held back by deleveraging, tight credit conditions and economic uncertainty".

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